US-based private equity firm Warburg Pincus has agreed to invest up to $500m in start-up oil and gas exploration and production company RimRock Oil & Gas.
With the new line-of-equity investment, RimRock will be able to acquire and develop energy assets in North America.
The company proposes to focus on the acquisition and development of unconventional oil and gas assets across select basins in the US and Canada.
RimRock Oil & Gas president and CEO Jim Fraser said: "In light of the current commodity price environment, we believe there is a compelling opportunity to acquire and develop large-scale assets with the support from Warburg Pincus."
Warburg Pincus principal Saurabh Agarwal said: "Jim and the rest of the leadership team have deep knowledge and operational expertise that positions them well to capitalise on the current market dynamics.
"We look forward to working alongside the RimRock team to build a business of scale and create value."
Bloomberg quoted Warburg Pincus co-CEO Joe Landy as saying at the SuperReturn International conference in Berlin, Germany, that oil producers and the banks that lent to the company are expected to take a hit as hedges continue to expire.
Affiliates of Warburg Pincus Private Equity and Warburg Pincus Energy are providing the equity for the investment.
Warburg Pincus has more than $40bn in private equity assets under management.
Image: RimRock proposes to focus on the acquisition and development of unconventional oil and gas assets in North America. Photo: courtesy of Victor Habbick via freedigitalphotos.net.
